Bhubaneswar: In a significant breakthrough, the Special Crime Unit of the Bhubaneswar-Cuttack Commissionerate Police has arrested Ramesh Majhi, a repeat offender accused of orchestrating a gold investment scam that defrauded more than 20 businessmen of over Rs 20 crore.
According to police, Majhi lured victims with promises of access to auctioned gold—allegedly pledged or seized by banks from loan defaulters—offering it at heavily discounted rates. The prospect of high returns on investment prompted several individuals to entrust him with large sums of money over the past five years.
However, once he secured the funds, Majhi reportedly failed to deliver any gold or return the investments. When investors began demanding refunds, he allegedly resorted to intimidation, threatening false caste-based legal complaints and employing local thugs to issue death threats.
The scam, spanning multiple districts, is one of the largest gold-related frauds reported in Odisha in recent years.
“He claimed to have links with bank auctions and said he purchased defaulted gold assets for resale. But once I gave him money, he turned hostile. His father is still threatening me. He has misappropriated over Rs 20 crore. All of us are now desperately trying to recover our losses.” alleged one of the victims.
Despite the mounting evidence, Majhi’s family has denied all allegations. His father claimed that Majhi was being framed and that a local builder, Bholanath Mohanty alias Papu, was the real culprit.
“Papu used to hand over unaccounted cash to my son since he couldn’t deposit it in banks. My son merely acted on his behalf. The police even forced me to sign documents. This is a conspiracy,” the father alleged.
Police has initiated a wider investigation to identify additional victims and trace the money trail. Authorities are also examining possible links between Majhi and other players in the shadow gold trade.
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